Rembrebrandt Picaso

Total earnings $ 525,000 $ 1,100,000

Number of shares of stock outstanding 150,000 550,000

Earnings per share $ 3.50 $ 2

Price-earnings ratio (P/E) 12 21

Market price per share $ 42 $ 42

If all the shares of Rembrandt Paint Co. are exchanged for those of Picasso Art Supplies on a share-for-share basis, what will postmerger earnings per share be for Picasso Art Supplies? (Do not round intermediate calculations. Round your answer to 2 decimal places.)